Florida's Watching, Mr. Thrasher

OUR VIEWS - FLEECED IN FLORIDA

February 12, 2000|By Brown

Speaker John Thrasher states in a letter on this page that he expects the Florida House of Representatives to vote again this year to slap a cap on rates lenders can charge for small loans guaranteed by car titles.

That's good news. Those loan sharks have been gobbling up the meager assets of poor and financially distressed consumers ever since 1995, when the Legislature approved allowing car-title lenders to charge as much as 264 percent yearly in interest and fees.

Despite the House's eventual vote last year to net those sharks, the legislation fell victim to a well-lobbied Senate.

This year consumer defenders are back, trying again to pass a bill capping car-title-loan rates at 30 percent a year. That's what 30 counties throughout the state -- accounting for about 75 percent of Florida's population -- have done, showing their disgust at the Legislature's refusal to take responsibility for its own mistake.

Mr. Thrasher notes that this year's bill already has sailed through two of its assigned committees. But his description of his treatment of the bill -- including his implied support -- leaves out more than a few facts.

Mr. Thrasher had a clear opportunity to get behind a reasonable car-title-loan cap last year, his first as speaker. But when asked then by this newspaper if the 30 percent cap was fair, Mr. Thrasher said, There are differences of opinion regarding the rate. The industry is willing to compromise. I don't want to impose judgment.

That seeming indifference quickly began to look like outright resistance as Mr. Thrasher ordered the bill to run a gantlet of five committees before the full House could consider it. According to the House Clerk's office, a typical bill -- even a brand-new one -- is assigned to three committees. And a similar car-title loan bill had passed the House the previous year unanimously.

Lacking Mr. Thrasher's support, the bill ran aground before reaching its fifth committee and had all but been given up for dead when the United States Navy steamed into the discussion. The Navy was concerned because its people were falling victim to the predatory lenders.

Mr. Thrasher, in whose district the Navy has a substantial presence, quickly snapped to attention, and only then did the bill continue on to its fifth assigned committee, then to the entire House and its endorsement.

Now, though, the counties in his district have their own limits on car-title lenders, and Mr. Thrasher has stopped saluting. So once again, he has required a bill that passed the House unanimously last year to try to survive the scrutiny of members of five committees, several of whom have taken large contributions from the predators.

Mr. Thrasher suggests that this story will end happily -- with the bill's approval. Floridians are waiting to see.